Expenditure incurred by a publisher for acquiring copyrights is an example of _______________.

Capital expenditure

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Revenue expenditure

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Deferred revenue expenditure

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None of the above

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Solution

The correct option is C Capital expenditure
Capital expenditure is an expenditure to acquire and maintain long-term assets. Capital expenditure is incurred on more valuable assets that have long-term use in the business. The long term usually means more than a year. Expenditure incurred by a publisher for acquiring copyrights is an example of Capital expenditure.

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